The financial services sector has been struggling in the S&P 500, but bank stocks are showing promise as Q4 earnings season kicks off. Ally Financial reported record Q4 earnings growth with EPS of $1.09, beating estimates, and revenue of $2.17 billion. The company also announced a $2 billion share buyback program and 2026 full-year guidance.

Ally Financial pays a dividend of $1.20 per share annually, offering patient investors potential upside of nearly 17%. The stock has been upgraded by multiple investment banks and has a Moderate Buy rating from analysts. Ally’s financial health is strong, with institutional ownership above average and a low short interest.

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Read more at Nasdaq: Ally Financial Pops on Q4 Earnings Beat and $2 Billion Buyback